Note 1: Summary of Significant Accounting Policies
Organization RT Technologies, Inc. (the Company) was
originally incorporated as Savannah River Technologies, Inc. under the laws of the State of South Carolina on March 2, 1995.
On July 31, 2007, the Company formed a corporation pursuant to the laws of the State of Nevada and on August 11, 2007 the
stockholders of the Company approved a change of corporate domicile that resulted in the dissolution of the South Carolina
corporation and the Company became domiciled in the State of Nevada with the name changing to RT Technologies, Inc.
statement presentation the common and preferred stock of the South Carolina entity referred to in the prior paragraph
carried a no par value designation. The Nevada entitys common and preferred stock carries a $0.001 par value designation.
The balance sheets presented represent the Companys current designations for its preferred and common stock for all
periods presented. No adjustments to the amounts carried in the stockholders deficit section of the balance sheet were
required at the time of the change of corporate domicile.
Development stage enterprise The Company was engaged in the
business of producing a global positioning system data recorder and in 1998 obtained approximately $380,000 through the issuance
of 474,678 shares of its common stock. In 1999 the Company discontinued its operations and is now considered a development
stage enterprise as defined in ASC Topic 915. Since that time the Companys activities have been devoted primarily to
raising capital from the issuance of common stock and loans from stockholders. The Companys development stage activities
are aimed at acquiring an operating entity through a reverse acquisition.
Quasi-reorganization During 1999 the Company
ceased operations and became inactive. Effective as of December 31, 1999, the Companys stockholders approved a quasi-reorganization
that eliminated retained losses of $951,540 from past operations by offsetting those amounts against paid-in-capital. Thus,
the paid-in capital account and the retained deficit account were reduced by this amount. No other accounts were affected
by this readjustment and subsequent thereto the Companys accounting will be substantially similar to that of a new
enterprise. Deficits accumulating since December 31, 1999, are being shown on the Companys balance sheet as a deficit
accumulated during the development stage.
Going concern These financial statements have been prepared in contemplation
of the Company continuing as a going concern. However, the Company has not generated revenues since it entered into development
stage activities in the year 2000. The Company's ability to meet its ongoing financial requirements has been dependent on
loans from its stockholders and issuances of its common stock. During the year 2002 the Company issued 3,000,000 shares of
its common stock pursuant to a $3,000 stock subscription receivable that was collected during 2004. During 2007, the Company
issued 7,000,000 shares of its common stock in payment of $7,000 that the Company had received from stockholders and its officer.
During 2011, the Company issued 2,500,000 shares of its common stock for $5,000 from its officer and director. The Company
is also dependent on managements willingness to serve the Company without monetary remuneration. The Company assumes
that these arrangements will continue during the next 12 months; however, no assurance thereof can be given. A change in these
circumstances would have a material adverse effect on the Company's ability to continue as a going concern.
Use of estimates
These financial statements are prepared in conformity with accounting principles generally accepted in the United
States of America and require that management make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities. The use of estimates and assumptions may also affect
the reported amounts of revenues and expenses. Actual results could differ from those estimates or assumptions.
Net loss per share and net loss per fully diluted share of common stock The loss per share of common stock is computed
by dividing the net loss during the period presented by the weighted average number of shares outstanding during that same
period. The fully diluted loss per share of common stock is computed by dividing the net loss during the periods presented
by the weighted average number of shares outstanding and the potential number of shares that could be outstanding during the
same period presented as a result of the conversion of preferred stock.
Income taxes The Company has not had any income
in prior periods and therefore, no income taxes have been paid. Management is of the opinion that future taxable income may
not be allowed to offset prior losses and therefore has not established a deferred tax asset.
At December 31, 2011, the Company
has a net operating loss carry forward of approximately $82,534 that expires if unused through 2031. A deferred tax asset
in the amount of $12,380 is fully offset by a valuation allowance in the same amount. In addition, the deferred tax assets
relating to temporary differences in the form of deferred stock compensation of $93,000, has also been completely offset by
the valuation allowance. The change in the valuation allowance was $91,266 and $2,012 for the years ended December 31, 2011
and 2010, respectively. A tax rate of 15% was used in the calculation.
The Company adopted the provisions of ASC Topic 740,
Accounting for Uncertainty in Income Taxes, on January 1, 2007. As a result of the implementation of Topic 740, the Company
recognized approximately no increase in the liability for unrecognized tax benefits.
The Company has no tax positions at December
31, 2011 and 2010, for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing
of such deductibility.
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and
penalties in operating expenses. During the years ended December 31, 2011 and 2010, the Company recognized no interest and
penalties. The Company had no accruals for interest and penalties at December 31, 2011 and 2010.
The Company has not had any realizable sources of revenue and consequently, has not established a policy for the recognition
Recently enacted accounting pronouncements Accounting Standards Update (ASU) No 2010-09 amends Topic 855
Subsequent Events to remove the requirement for an SEC filer to disclose a date through which subsequent events
have been evaluated in both issued and revised financial statements. It was determined that the requirements to disclose the
date that the financial statements are issued potentially conflicted with some of the Securities and Exchange Commissions
(SEC) guidance. The amendment is effective for interim or annual periods ending after June 15, 2010. Certain Revenue Arrangements
that include Software Elements, and various other ASUs No. 2009-2 through ASU No.2011-12 contain technical corrections
to existing guidance or affect guidance to specialized industries or entities were recently issued. These updates have no
current applicability to the Company or their effect on the financial statements would not have been significant.
has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if
any, on its results of operation, financial position or cash flows. Based on that review, the Company believes that none of
these pronouncements will have a significant effect on its current or future earnings or operations.